Question
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of
Direct Materials and Direct Labor Variances
Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy:
| Direct materials (6.30 oz. @ $0.20) | $1.26 |
| Direct labor (0.08 hr. @ $18.00) | 1.44 |
| Standard prime cost | $2.70 |
During the first week of operation, the company experienced the following actual results:
- Bars produced: 141,000.
- Ounces of direct materials purchased: 888,600 ounces at $0.21 per ounce.
- There are no beginning or ending inventories of direct materials.
- Direct labor: 11,140 hours at $17.30.
Required:
Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box.
1. Compute price and usage variances for direct materials.
| Materials Price Variance | $fill in the blank 1d84e4fc304301a_1 | |
| Materials Usage Variance | $fill in the blank 1d84e4fc304301a_3 |
2. Compute the rate variance and the efficiency variance for direct labor.
| Labor Rate Variance | $fill in the blank 1d84e4fc304301a_5 | |
| Labor Efficiency Variance | $fill in the blank 1d84e4fc304301a_7 |
3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank or enter "0".
| fill in the blank 5ab993004fb1033_2 | fill in the blank 5ab993004fb1033_3 | ||
| fill in the blank 5ab993004fb1033_5 | fill in the blank 5ab993004fb1033_6 | ||
| fill in the blank 5ab993004fb1033_8 | fill in the blank 5ab993004fb1033_9 | ||
| Record purchase of materials | |||
| fill in the blank 5ab993004fb1033_11 | fill in the blank 5ab993004fb1033_12 | ||
| fill in the blank 5ab993004fb1033_14 | fill in the blank 5ab993004fb1033_15 | ||
| fill in the blank 5ab993004fb1033_17 | fill in the blank 5ab993004fb1033_18 | ||
| Record usage of materials | |||
| fill in the blank 5ab993004fb1033_20 | fill in the blank 5ab993004fb1033_21 | ||
| fill in the blank 5ab993004fb1033_23 | fill in the blank 5ab993004fb1033_24 | ||
| fill in the blank 5ab993004fb1033_26 | fill in the blank 5ab993004fb1033_27 | ||
| fill in the blank 5ab993004fb1033_29 | fill in the blank 5ab993004fb1033_30 | ||
| Record labor variances |
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Securitization The Process Of Homogenizing Financial Instruments Into Fungible Securities So That They Are Sellable On The Securities Market
Authors: Jean B Keating
1st Edition
979-8859072613
